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Which of the following statements about the equity factor ( equity risk premium ) is MOST accurate? A . It represents the market risk inherent
Which of the following statements about the equity factor equity risk premium is MOST accurate?
A It represents the market risk inherent in all types of investments, including bonds and real estate.
B It reflects the additional return expected from stocks compared to a completely riskfree investment
C It is only relevant for individual stock analysis and has no bearing on portfolio construction.
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